HomeMy WebLinkAboutMINUTES - 09151987 - 1.59 1-059
HOUSING AUTHORITY OF THE COUNTY OF,CONTRA COSTA
TO: BOARD OF COMMISSIONERS DATE: August 18, 1987
FROM: cc:
Perfecto Villarreal , Executive Director
SUBJECT:
FIRE AND EXTENDED COVERAGE INSURANCE
I . RECOMMENDED ACTION:
Authorize the Executive Director of the Housing Authority of the County of
Contra Costa to purchase Fire and Extended Coverage insurance in the amount of
$500,000"with a $105000 deductible; at an annual premium of $81,725, through the
California Housing Authority Risk Management Agency (CHARMA), as recommended by the
Advisory Housing Commission.
II , FINANCIAL IMPACT:
Funding for the purchase of Fire and Extended Coverage insurance are available
from the residual of the $500,000 self-insurance reserve authorized by the Board of
Commissioners on .October 22, 1985:
IIT . REASONS FOR RECOMMENDATION/BACKGROUND:
On November 7, 1985, the Housing Authority of the County of Contra Costa became
self-insured for Fire and Extended Coverage insurance and for General Liability
coverage. At that time a $500,000 set-aside reserve was placed in an account for use
in Fire and Extended Coverage and General Liability losses. Since the inception of
the self-insurance program $103,396 has been expended from the insurance reserve
fund.
On April 1, 1986 the Housing Authority of the County of Contra Costa entered
into a Joint Powers Agreement with the Oakland, Fresno and Marin Housing Authorities,
which formed the California Housing Authorities Risk Management Agency. CHARMA
currently insures the Housing Authority for $1,000,000 of general liability with a
$25,000 deductible. '
On November 1, 1987 CHARMA will offer Fire and Extended Coverage. This Housing
Authority may purchase $500,000 of Fire and Extended ,Coverage, with a $10,000
deductible for an annual premium of $81,725. A copy of the CHARMA Property Coverage
Form and an analysis and comparison of fire premium and deductible levels has been
forwarded to Contra Costa County's Risk Management Department for review and
approval .
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDAT ON OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD ON SEP 1 5 1987 APPROVED AS RECOMMENDED OTHER
VOTE OF COMMISSIONERS
_ UNANIMOUS (ABSENT J ) I HEREBY CERTIFY THAT THIS A TRUE AND
AYES: NOES: CORRECT COPY OF AN ACTION TAKEN AND
ABSENT: ABSTAIN: ENTERED ON THE MINUTES OF THE BOARD
OF COMMISSIONERS ON THE DATE SHOWN.
CC: County AdministratorATTESTED SEP 15 1987
Housing Authority Phil Batchelor, Clerk of the
County Counsel Board of Commissioners
M362/7.83 BY DEPUTY
Board of Commissioners
August 18, 1987
Page -2-
CHARMA is currently soliciting membership in the HUD approved insurance groups
formed by the National Association of Housing and Redevelopment. Officials (NAHRO) and
Housing Authorities Risk Retention Group sponsored by the Council of Large Public
Housing Authorities. Membership in these groups would afford CHARMA excess coverage
to $5,000,000. Membership in these groups would also enable CHARMA to begin offering
Automobile Liability Insurance early in 1988.
At its meeting on August 17, 1987, the Advisory Housing Commission voted to
recommend to the Board of Commissioners that the Executive Director be authorized to
purchase Fire and Extended Coverage Insurance in the amount of $500,000 with a
$10,000 deductible, at a premium of $81,725 through the California Housing Authority
Risk Management Agency.
IV. CONSEQUENCES OF NEGATIVE ACTION:
Should the Board of Commissioners fail to respond positively to this request to
purchase Fire and Extended Coverage insurance in the amount of $500,000 with a
$10,000 deductible, at a premium of $81,725, through the California Housing Authority
Risk Management Agency, the Housing Authority would be forced to continue its
self-insurance program with increasingly inadequate funding.